Why New LEDTV Brands run out of fuel in India Market.......

In last season, we have seen so many new brands were launched in Indian market with jet speed and most of them were vanished from market much quicker.

If we analyse the brands and their roots, we can broadly classify these new Brands into the below mentioned categories which were launched by.

1.      Big Retailers (Regional & National format)

2.      OEM Suppliers

3.      Ex-Employees of Brands

In most of these case they hit road block sooner or later due to misinterpretation of market dynamics or they want to cut short the sales cycle of new brand to increase cash rotation.

We will see one by one how the above mentioned were gone out of fuel.

Big Retailers: In recent trend most of the Retail Giants (Regional/National) they have launched their own private label brands in various categories like FPD/WM/Kitchen appliances etc.

The main motto is to use this brand like category killer to pull more crowd and star highlighter for entire season and especially they lack route map after the season. So they struck between two ends and some point they break the cycle.

Let’s illustrate the same in different situations, normally these private label starters won’t do in-depth study of technical side of the product while short listing the model from suppliers and most of the retailers are depend on the middle man who takes care of the transaction between them and China supplier.

Most of the middle man will have very minimum or zero knowledge about technicality of the product and they mainly prefer the suppliers with whom they have better access and rapport with sales team of suppliers.

Most of the times middle man plays vital role during transaction because he knows the customs process on both sides (China & India) and coordination part will be done more vigorously by middle man because they are hired for that purpose only.

Most of the times it seems to be rosy while dealing till shipments reach to India and practical difficulties will surface at later stage due epidemic failures of parts and boards.

In these cases probability of help from those suppliers will be very bleak because these big retailers are one time or small quantity buyers. And even middle man will be of no use because they will cater your needs till you place next PO once you put break to buying they will look for other buyers.

Another illustration, Big Retailers who buy large quantities expecting huge response in season and somehow it won’t show up in sales figures then they look for various channels to liquidate the product like wholesale to secure cash inflow. It will disturb the entire harmony of market and it will lead to distress among others and it may end up in others to follow the same path.

OEM Suppliers: As per the recent trends even OEM suppliers are changing their way of working to a larger extent to ensure their survival in this tough competition.

Most of the OEM suppliers in India will have very limited IDs (Aesthetical front Cabinet) to offer because they cannot afford to maintain varied options because it increase their mould cost (working capital) by many folds. And many times they usually won’t disclose this to clients.

New entrants when they approach these OEMs they will not have options to differentiate their product from competitors. So they will hit by reality once they launch their product in market like same product is available at lower price and trade partner’s acceptancy will become question mark.

Few OEMs are pumping their product in E-Commerce sites to leverage their production capacity and operational cost under different name at the time of season.

In their point of view they are trying to optimise the cost of production but it is ultimately hitting very hard the new brands survival who are actually serious about their business.

Ex-Employees of Brands: As a professional with plenty of experience we all wants to grow stronger and faster in our Industry and when we run out of options with available Big brands then we will look for different avenues to build our reputation in market but in most of the times it is one more like a way for our survival.

We will try to harness our market contacts with business proposal designed based on your industry experience. In most of the cases even Businessman from our trade invite these things because they too look for different options to invest to increase their turnover.

In these cases we expect to start with win-win proposal for both the sides and to maximum extent it will start in that way only. But we will purpose fully avoid or neglect few intricacies in plan which will lead us to panic situations at later stage.

Let’s illustrate, in most of the business plans in these kind of projects will have very fragile structure of manpower and poor marketing strategy and disproportionate costing will be done.

As head of the project, we will put low cost manpower at sales front and high cost in back end due to this overall it looks viable but it makes sales structure very fragile. In the same way major cost cutting done at service front taking supplier words seriously which will leave the brand vulnerable for the market shocks in future.

Whatever I have discussed above are only glimpse of mishaps about new brands in our market but if we go through in detail we will have multiple permutations and combinations for brand manoeuvrability in market.

To put in simple terms like everyone knows human baby will take 9 months’ time to deliver it is cycle and will different development stages before it moves to next one. And in every stage we do scan to access the health of the baby.

But we will try to tweak this cycle in Business especially when it comes to new brands in consumer electronics. Some people say we did it based on our experience and some people say based on logic and guts and they put it in form of scientific study.

But ultimately these things will end up in producing pre-mature and malnutrition brands which will struggle at every phase of its existence.